Question: I was asked to work over Eid Al Adha due to the amount of work and some new contracts. I didn’t have any plans, so I agreed and went to the office on Thursday and Friday.
I have now been offered two extra days of holiday in return. Can I ask for money instead of time off? BB, Abu Dhabi
Answer: All employees are entitled to take annual leave on official public holidays that fall on their normal working days. There is a procedure in place to compensate people if they work on such days.
This is covered in Article 28 of the new UAE Labour Law, which states: “If work conditions require that the worker works during any of the public holidays, the employer shall compensate him with another day off for each day, on which he works during the holiday, or pay him the wage for that day according to the wage established for normal working days, plus an increase of not less than 50 per cent of the basic wage for that day.”
This means that BB is entitled to either time off in lieu of the public holiday worked plus an additional payment of 50 per cent of their standard daily wage. Or if they do not have any extra time off work, they are entitled to receive an additional payment equivalent to 150 per cent of their daily salary or wage.
In such situations, the method of compensation should be discussed and agreed before the work is undertaken to avoid any confusion or disagreement.
Q: I have a life insurance policy that I took out 10 years ago when I was living in the UK. I thought it was all OK and I was still insured but I met a person from a bank who said it would not cover me when living in the UAE and I need another policy. Is he right? JL, Dubai
A: JL has a term insurance policy and it was set up long before he had any plans to leave the UK. If it is a term policy for life insurance (death benefits only), he pays the premiums from a UK bank account by direct debit, and has notified the insurance company of his current country of residence, it will be valid.
If a policy includes critical illness cover or is on a whole of life basis, the situation can be different and varies between insurance companies.
Policyholders must always notify the insurer if they move home as well as country because contact information must be registered correctly for any claims to be made. When doing so, it is wise to request confirmation that a policy will remain valid. Always get the confirmation in writing.
Policies that include critical illness cover can be problematic. In some cases, that part will not be valid for non-UK residents at all. I have come across other situations where the insurance company has stated that they will only consider a claim if the person moves back to the UK before making it.
That is not helpful for someone who is seriously ill and receiving medical treatment in the UAE. They may not be in a position to relocate or even want to do so.
Be wary of salespeople looking to arrange new plans without full facts, but there are some situations where existing policies may be invalid.
All insurance policies and savings plans should be checked and updated when relocating. If unsure about validity, seek qualified independent advice.
Q: I have been offered a job in Kuwait and sent a contract of employment. It refers to a fixed-term contract of four years, but aren't all contracts now open-ended? KG, Abu Dhabi
A: Employment in Kuwait is governed by the Private Sector Labour Law No.6 of 2010. The country has its own laws and while the UAE no longer has fixed-term employment contracts, the law in Kuwait is different. Both limited (fixed) and unlimited contracts are available.
Article 30 of the relevant law states: “If the employment contract is for a limited period, its term shall not be more than five years and not less than one year. The contract may be extended upon expiry by the agreement of both parties.”
KG needs to be aware that if he wishes to end a fixed-term contract before it ends, there is a penalty, which can be equivalent of the salary due for the remaining term of the contract.
The most common period of a fixed contract is two years and four years seems very long. KG can ask for a shorter fixed term. This often suits both parties because if employment continues after the initial contract period, it is automatically renewed but the term becomes indefinite, and, therefore, open-ended.
Contact Keren Bobker at keren@holbornassets.com or at www.financialuae.com
The advice provided in our columns does not constitute legal advice and is provided for information only
